If the Director determines that a private self-insured employer has failed to pay required benefits, what may he do?

• A. Utilize the self-insured security deposit if the Self-Insurer's Security Fund refuses to pay compensation benefits.
• B. Utilize the self-insured's security deposit to administer and pay the Employer's compensation obligations.
• C. Refer the issue of non-payment of benefits to the WCAB
• D. Refer the issue of non-payment of benefits to the Superior Court for Writ of Mandate.

Answer: (B)

The key idea is that a private self‑insured employer must post a security deposit to guarantee payment of workers’ compensation benefits. If that employer fails to pay benefits, the Director is empowered to tap that security deposit to administer and satisfy the employer’s remaining compensation obligations. This provides an immediate source of funds to continue and complete benefit payments for injured workers without waiting for other remedies. It ensures claimants aren’t left without benefits while the employer’s liability is resolved.

The other options aren’t the standard first step. Referring the non-payment issue to the Workers’ Compensation Appeals Board or seeking a writ of mandate would be actions for enforcement or court relief, but the security deposit already exists as a ready means to fund the owed benefits directly. The Security Fund is a separate mechanism and isn’t the primary tool used to pay benefits in this situation.